Who Can File Bankruptcy

For personal bankruptcy, anyone who lives in or has property in the United States can file bankruptcy. There are a few exceptions like if you can pass your states means test for Chapter 7, or if you have a reliable source of income for a Chapter 13 bankruptcy. Also, you must not have received a Chapter 7 discharge within the last eight years.

Chapter 7

To be able to file Chapter 7 bankruptcy, you must be able to pass the means test. The means test is when you make the same or less income as the median income in your state or region. To get a chapter 7 discharge, you must not have obtained a chapter 7 discharge within the last eight years. Chapter 7 is the fastest and easiest form of bankruptcy and can be completed in as little as three to six months.

Chapter 13

To be able to file Chapter 13 bankruptcy, you must have a reliable source of income to make the back payments on your secured debt, such as your home or your car. When filing bankruptcy, your chapter 7 can also be changed to a Chapter 13 bankruptcy if you have a substantial income to pay your debt.

The bankruptcy judge can dismiss your case if you are using bankruptcy to harass your creditors, or you recently ran up your credit cards, knowing you would soon by filing bankruptcy.

If you would like more information on filing bankruptcy, contact a Plano bankruptcy attorney to find out how you can eliminate all of your qualifying debt.